Merck Ends Acquisition Talks with Revolution Medicines Over Valuation Disagreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Benzinga
- Acquisition Talks Ended: Merck's discussions to acquire Revolution Medicines have concluded due to valuation disagreements, despite earlier reports suggesting a deal could be valued between $28 billion and $32 billion, indicating Merck's cautious approach towards high-growth oncology assets.
- Significant Market Reaction: Prior to acquisition rumors, Revolution Medicines had a market value of approximately $16 billion, but its shares surged to briefly exceed $22 billion following speculation, reflecting strong investor interest and optimism regarding its potential value.
- Future Deal Prospects: Although negotiations have ceased, sources indicate that talks could resume or new bidders may emerge, with investor attention building ahead of anticipated clinical trial data releases for pancreatic and colorectal cancer drug candidates.
- Clinical Trial Progress: Revolution Medicines' daraxonrasib (RMC-6236) is undergoing two global Phase 3 trials and has been included in the FDA's National Priority Voucher program, with projections suggesting annual sales could reach $10 billion by 2035, further attracting market interest.
Analyst Views on MRK
Wall Street analysts forecast MRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRK is 119.53 USD with a low forecast of 95.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 107.400
Low
95.00
Averages
119.53
High
139.00
Current: 107.400
Low
95.00
Averages
119.53
High
139.00
About MRK
Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Company sells its human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. It sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. Its Animal Health segment discovers, develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species. Its products include KEYTRUDA (pembrolizumab) injection, for intravenous use; WELIREG (belzutifan) tablets, for oral use; Ohtuvayre (ensifentrine) and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
